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Michael Jackson estate, AEG, to repay Los Angeles for tribute costs

By Alan Duke, CNN

STORY HIGHLIGHTS

AEG, Jackson estate to pay LA $1.3 million

AEG CEO says company was not obligated

LA mayor praises AEG, estate's 'good corporate citizenship'

Los Angeles, California (CNN) -- Michael Jackson's estate and the company that produced the pop star's memorial service will pay $1.3 million to the Los Angeles to cover city expenses for last summer's tribute.

Los Angeles officials criticized the estate and AEG last year for not helping the cash-strapped government pay what the city estimated was $1.3 million paid for putting extra police on the streets, trash pickup, sanitation and traffic control.

The payments, which will include $1 million cash to the city's general fund, "will now allow us to finally put this issue behind us," AEG president Timothy Leiweke said.

The Los Angeles Police Foundation will get $210,000 in cash and equipment donations. The foundation was already given $90,000 raised through the sale of luxury suites inside the Staples Center event.

"It was important to us that all parties agreed that this was not an obligation but a choice we believed was important to make at a time when thousands of city employees are being reduced," Leiweke said.